« Stuff You Should Know

The ins and outs of the DEATH TAX

2017-02-21 | 🔗

The estate tax, also known as the death tax, is not new. It's actually been around in some form since ancient Rome. Some say it's a necessary tax to help prevent resting on your inheritance laurels. Others say it's straight up double tax robbery. Learn all about this controversial tax today.

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together in a room, get a little air conditioner noise going like out. The windows creates on the walls bringing a cup of water for me and like nothing, would have for beverage I don't know if the rear day, what is that is so weird they're out of Pellegrino enough? who is sitting here like I've, never seen you without a beverage within three feet of your body, and I have also am really tired of the coffee here. It's not ok! Oh really, drinkin Irena none working for you jack! Chuck had its life. Although- twenty over the years. When I go into restaurants, usually like some sort of like an ethnic restaurant and ass for my name in a sick joke, there was always a jack. I was there. I just go with it. Yeah, I'm here Jack, because what
first, I know get my name right around the little things right down to my ticket. He described the thin member. Who fell fearing? Well, it's a perfect segouin about we're talking about today it Jack, the debt. That's right, one of our scintillating, internal revenue centred casts and we have done of they tax related episodes. If you think about it, This one, I'm surprised we haven't done this one and actually had in check, haven't right. I checked, we have not. Ok, we ever did seem familiar there, but I definitely double checked. Yes, I was pretty interesting specially below this will be the history of it, which basically is we're going to. Or would get the death Mexico and very likely the richer gets here to get their tax go here. So we should.
We say, were the death taxes in actually death tax. We should be saying that taxes, because there's a couple of different kinds of their taxes nets. Basically the term that used by people who are in favour of their taxes right the kind of make it seem like it just stupid idea like here, did you have to pay attacks? The dye come on people's snap out of it, so basically you have two types of their taxes as a sales right now here in two thousand seventeen you ve got everything the United States the estate tax. Then you have the inheritance tax and both of whom are basically Dexter taxes. The estate taxes where you die you haven't estate new state is the total of all the stuff you own and all the debts. You have so the first thing that happens:
state. Your desk get paid off shore and then your executor gets paid off for their troubles. You funeral gets paid off and then Uncle SAM standing there with his hand out to join in and out of a cannon costs. Forty five thousand right take them off the top yeah. Oh Uncle SAM Sand and their only says, hey laid Army, guys, like forty percent of that, that's your estate tax. Yes, then, after that ensue States the money goes to the airs and then the states come along and say it's altered now and because you know states rights on what they used to and then you silly comes along and they want their. And then city or no longer to listen to your next door. Neighbor comes along and seated paid a neighborhood tax on the right. Can I have my law more back so yeah? Basically. If you die in a state that has inheritance tax you're going to pay and the state takes an inheritance inheritance tax on your estate after your death, you
care, but your airs well and you may care every moment leading up to that last one after that, you'll be fine. I think the Beatles had a right on the money there that's on come together. He like Lucy in the sky, with diamonds, no tax, men, the great song. If you know, if you drive a car tax, a street you take a walk on tax. Her feet is very, very libertarian. Yeah come to think of it in the background, if you play it backwards because who is John goal at the Did we do want to back masking? No, I really do that when they do all right, so you just described the estate tax eyes. I describe ok, you said the inheritance tax yeah. Ok, that's the one where the states I can we ever come to. Rather they texture airs, not yours that yellow
after you get the dough you in your text, so you're right both of those together make up the death tax and damn well. Over the years it's been debated both economically and philosophically. And I guess we should go back in time and the way back machine to ancient Egypt, we fired up did you progressing? I did So if you, if you go back to ancient Egypt, actually have existing papayas with that tells the story of men, basically either trying to dodge paying a debt tax or paying death tax write to different versions of that story. Has spending on the guy was eager tell which, when you supposed to do because the guide dodging it had it using the middle of a circle with Lastly, that's right. Don't be this guy and of course, in ancient Rome they,
big on begun trend, modernize, everything and, of course, meet the tax code as well, and Caesar Gustus instituted something called the Vista Siena Herod, Toddy em that's right, I think so. My Romans not what it used to hear the daddy I'm here. The translation is twentieth. Penny of inheritances in taxes, sex sessions, legacies and donations after death right they should discovered that tax. Sheriff. Whoever came up with I couldn't find, who did? But it's pretty clever, said, there's long been debate is even an. Rome, their exemptions, close family back then you could give away some irritable donations, which is a kind of similar to what you can do today. That's it
It's a very long standing tradition, and there should be- I mean like if you want to give a bunch of money to a charity men there should use. That should be unfettered. Yes, in effect, you should maybe even Google tax breaks for that sure as people at least a pat on the back from everybody in the community and then plenty the younger, not the elder beer man which, once the the one is so hard to get. I think plenty, the elders, the beer that's hard to get right. I saw no might be the other way around. So there's plenty younger beer his well the urgent one. You can get basically all the time, the other one like the same in line for a week in a half outside of the the brewer really get it, and they give you used to bring your online get rid of it and they make you show your right there. They kicking in the bud, you walk in they're doing right or regardless of the measure which one plenty, the younger criticise the stacks and he said,
You know what you're doing you're, taking advantage of people of these families that are destroyed over the death of a loved one yeah. How unfair is there I would guess it plainly. The younger may have been rich from that that you're right where to go to England and France yeah. We Emily jumped over several centuries. Lasher. I dont know, though, if the holy Roman empire was in their taxes, but by the time we arrive in now Futile England there. So what have been the holy roman empire? Think in the thirteenth century, in England, by the time they founded the Magna Carta, their taxes were so unpopular. That is like one of the first causes of the Magna Carta. Like you, gotta lay off on the death taxes. You could do him, but not so much That was the verbatim quote in the Magna Carta. Every time I hear Magna Carta, I think of the Johnny dangerously. Did you see that? I remember that? I think it's the end.
When there are taken like walking. Maybe Johnny to his execution and they have the fake priest. You speak Latin has Magna Carta Master Charge so dumb. Whenever I hear Magna Carta, I think that one Simpsons were is training to be realtor and leases. Teaching her like that, if use, if you make a sound Out of what you train, memorabilia heresies, like in twelve fifteen runny me, do died due dive it's funny. There's historians out there right now going when I hear of Magna Carta, I think of the Magna Carta Rights, because you imbeciles you ve done a thin Moving on to the United States is thus mainly kind of what we're talking about here. With the dead tax, it was baited in Scotland, which carried over eventually into our own founding fathers, but some notable philosophers and economists, and they
to be very heavily tide, which I think is interesting philosophy in economics yeah. I guess it still is in some circles yeah. I think economists like to pretend that's not the case, but I think you're right, I mean there's a certain philosophy but we talk about people like John Locke and I've been summoned Adam Smith before, and they ve kind of remained lockstep with their principles and on the debt tax write so Smith and law we're saying nothing now: there's no other governments role the tax, a person's airs idea. They die Blackstone, the very famous magician said no we we absolutely should be taxing people's estates when they die because we want to prevent dynasties. And finally, somebody in history comes out and says it like that. Basically, the point of the estate
yeah and dumb, and then I think Germany Bentham said basically the same thing like Airways. We like real well, should not be able to grow exponentially in a single family. That's that's bad news. Yeah that sort of, like you said, been the root of the philosophical debate from black stones. Bernie Sanders San and we'll get into the what people commonly roof, call the pros and cons, but one of the causes and whether it's an of you can prove its true. But one of the constant people point you, as you leave these kids all these millions of dollars and you're gonna end up on dope well or their much less likely to be superpower to earn money must much less likely necessarily but they're, not as incentivize to be constructive contributors to society know they're, not
It's well put yes, so, like I said this kind of transport over to the founding fathers of the United States Yet because again I mean the: U S was founded very much on enlightenment thinking there, so the guys who under the EU, S were looking over to Europe and sing like one of those guys say and right now. What do we think about that? You said apply here say what did they say over? There are no I'll, let you know in six what I've heard fulsome, Message on about the stamp tax of seventeen eighty seven in this the begins, a long tradition of pale we're going to war. We need to raise some dough Yucas at first they resisted the the death tax trade gathered aid needed to protect the colonies and ethics. So to find a war against France enable war. They said about a stamp tax which, when I was a little kid you never heard of the stamp tax netting, get it made
but basically it was attacks on every piece of paper printed. Like every other document. Official document by and newspapers- and still I do if you have document that you need a file right fur like judge to really somebody's personal effects to you. There ere you had to show them this document in for the judge release it had to be stamped and you have to pay for that stamp yeah. So, in effect it was a government tax, because this whole transaction couldn't happen till the government officially got its cut and the stamp was proof that the government had gotten its cut in the transaction. Transaction can proceed. Yes, anything from straight of letter to receipts for legacies.
Even the attorney licence leg, apparently attorneys had to pay like ten pounds. Powder for the whig just to get licence was about a thousand bucks. Now a really yeah sure they pass that they hold you up an offence about I'll bet. You it costs about that much these say in it. Probably ten grand for an attorney license. I could see it to sound about right. They make a pretty quickly there. I think so. In a couple hours couple hours at the desk watching the little bird did speak in a rudder thinking about this merce, I'm just getting better. Out there? We love you and us everyone to ensure they did have rules back. Then, though, even for the stamp tax which we're gonna carry
throughout the years in one way or another states under fifty bucks were exempt and then, if anything above fifty had a graduated scale, attacks right, which is still kind of what we have today yeah. I read this. This post by the sky am, I believe, Forbes, and he, with his name, is Bob Ray. What can he wrote a book on that tax? He wrote the book vendetta already much generally, and he was saying that for most of history there, especially the history of leading up to America, there was not a question of whether there should be a death tax or not. It was How much is the upper limit and what are the exemption right? Yeah? What's the minimum and what are the exemptions that basically yet, which is kind of where we ended up in the modern times she sort of debating and going back and forth right even still I mean like right out of the gate
in Rome. We talked about how there are exceptions where a few donated to two like a charity- yes or here it's like if my voice Club of Rome, you're right or if your estates fifty dollars worth fifty dollars, there is like no one wants. That is fine near him. Back in there lay a tenth century that wasn't very much yeah takes hundred dollars. Today said the stamp tax was repealed in eighteen, oh two, because the war ended, or at least particular war that they were funding, ended yeah and they thought about it again. During the war of eighteen, twelve without were ended before they had a chance to get it through, and maybe we should take a break here and pick up
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so Chuck Naval, with France, funded by the staff at Saint, backed the taxes. Go away for a while and they came back, they actually stayed low in the It states until the civil war yeah. We should point out this. These debts access, didn't fund entire wars there. You know there are many. Other taxes involves right for this stuff right oh boy, and when I mean stay low I mean like non existent said: the rates were low, so in the civil war, detect came about and dumb there it was. It was different than what has been proposed with the stamp act. So the p but who received the inheritance, were the ones who are taxed so, inheritance tax, not in the state tax, write
yeah it wasn't. My k we're gonna tax, these stamps, which is really kind of a roundabout way of making a death estate tat right exactly. This was like actual your uncle died. You got that money. Guess some over gonna break your legs office. C4 Italians, right, that there is an amendment two years later, where on it wasn't just like personal effects or maybe ox or cash or whatever, but real property came to be. Tax is part of the estate as well, and then, lastly, I think in eighteen, seventy or no as part of their eighteen, sixty four minute, there's also a gift tax, and this is a big loophole. People would take advantage of yeah. It's funny. Huh like earlier early on, even people like figured out a way oh well, here's
due to sell my assets and even if it's free and less money just to get it off the books? What's my kids or something like that, yeah like yours, like my dad, saw me a car ones for a dollar nice. That's a sweet deal near home. Did you pay him unlike pennies and happy actually one of the dollar and ended up costing me like a lot of money and repairs until half it'll sort of not a great deal in the end? Did he say? Buyer beware! Chump now and I don't want to be a look. It gets worse in the mouth. Was a nice gesture. There is still a move on, sir we're so that the big loophole with that give taxes. If you want your kids, have all of your stuff and you wait until you die to pass it on to him. Well, if there's an estate tax, the government's gonna take a big yeah, but if you're alive- and you say- hey kids- fill in a little over the hill,
and I think I'm gonna die soon. So I want you to have all the stuff for my estate. You can have a tax free, Khazars, no give tax The government finally said- and I think eighteen sixty four wait a minute. There's a give tax now and we see your loophole, but it even made it to give tax was still less than it was for an estate tax or an inheritance, tat, so it was still advantageous you're a very wealthy family to pass on your side. While you were living, then it was to leave it You died right, buddy, it'll be tat. They would eventually equalize those right later on, yes, but not for a few decades, all right. So, let's just get into the twentyth century. Here industrialization, one of the by products of that was it led to a concentration of all right for a lot of families. So the government was like our eighty Celia wealthy families out there,
Gunnar about, are not about money and keep it and passage your kids. They capacity their kids. We want our cut and it wasn't just the governmental asthma effectiveness her how much the German had do with it, but that there is a populist movement that arose yeah. There was basically like we want our cut, and you know, wizard of OZ was was written during that time. Thank her really Frank out bomb. The author of the wizard of OZ was a populist in those apparently to their age. Allegory allies of it a yellow, brick road is some commentary the gold standard, in fact that is in Kansas, is has to do with the agreed en route to the potter, the scarecrow is no Elvis sure some we're like that. I put on some pink Floyd
though, that there is a big movement in part of this big popular movement was hey. There's a lot of really wealthy people here. Will you guys should should stop this procession of wealth, you guys being the government and they they started to get there. There is an income tax instituted in Eighteen. Ninety four, I didn't realize this. I thought the forcing context came later. Nineteen sixteen, but they made they took a crack at it in eighteen, ninety four, but whose ruled unconstitutional free other than the fact that it was an income tax or a death tax ripely was ruled unconstitutional, but not because of the death tax, scatter different reasons, so they said, will get that income tax, don't you're right. Plenty- constitutes its weight to sway twenty years. Twenty two year then comes along another war, the spanish American WAR and they instituted the war revenue active eighteen. Ninety eight and this one looked a lot like the one that we have.
When I was in a state tax rather than an inheritance, yeah- and I had this- is familiar exemptions. This time, under ten thousand left to a spouse was fell under the exemption and the rate of tax depended on. Of course, how bigger state was and then who you were given it to yet another still around a day and a lot of play, Yeah. If you are somebody's nephew, you're, probably gonna pay the full bracket of taxation I really was very according to a yak couldn't who you are or if you like, you're drinking buddy, you're gonna, pay the full the full amount. If a like a grand child, you pay less than the drinking buddy. But more than the spouse and than the spouse.
Usually in and has been for a very long time whenever there is an exemption within a state tax, the the spouses usually completely left alone, there's no tax if the entire state goes over to the spouse. So that's the current role sue you black at any to look up drinkin buddy. Take your club clubs gonna pay through the nose. I'm afraid boy he's like that, he's counting on me dying, leaving my bike, guess what So with that one, more revenue, active eighteen. Ninety eight again war ends in nineteen o one Congress repeal the tax yet, which is weird I kept reading now. What do you mean? repealed the tax when they stop doing that but apparently they used to institute new taxes, get the money they needed, and then they would say we got enough
how the hell are you as a body and then just more new taxes right. So This can a marked a turn where people started to get who wrote. This was his Jane Mckenna Graph She calls it a growing distaste for inherited wealth and start a kind of people, steam, most notably in the form of President Teddy Roosevelt, who was not a fan oh he actually the around this time. There was another there's, another big push for the income tax on them, I've been repealed. Yes, Roosevelt was like I'm not sure about the income tax. But I'll tell you what is great idea. The estate tax near was given and there he said. Basically, Our national legislators should enact a law providing for a graduated inheritance tax, the prime objective.
To put it constantly increasing burden on the inheritance of those swollen fortunes, which it is certainly of no benefit to this country. To perpetuate their, I mean I can always down there. I go out make your own money essentially will yet- and I think that part of the other point Is that really seems to apply today? If you listen to your dark money episode two year, money very This translates into political power, now translates into political speech, but it's always translated into political power. And if you have more more money, just being passed along from one generation to the next that that that families Just amassing more more money, there amassing more and more power, and that's not good, for democracies is good for monarchies, but not democracy in the world.
I was saying so Roosevelt support it big time. It also was supported by Taft and Wilson, but is still took a look, of time and another war before Congress would get back on again with another death accident. Were war one world war. One! The? U s lower. Tariffs on our allies and wanted to build up a stronger defence and all of a sudden, he said, wait a minute. We need dough. Yet this new fangled tanks aren't cheek and build themselves. So they stay, went back and said, maybe that income tax ideas pretty good one, so they came up with the revenue after nineteen sixteen and that's where the modern then modern income tax. And the modern state tax were born and has been noted. Back no the really hasn't because they were initially
Apparently initially they planned on repealing it after the war, and there like this is pretty good I'd like rolling and piles of money. So, let's just keep again. Big yander. At this point, the exemption was fifty thousand dollars and headed She waited rate of one percent on amounts under fifty grand up to ten percent on amounts over five million dollars right to let it go back Oh no! It also text real and personal property if you transfer of the at death, or even in the two years before death near that loophole, yet it was tax and then they give a gift ex, but there's still loopholes you like, if you did it three years of transfer over three years before you daddy, you fire, you just said,
and poverty for the last three years of your life and hope that you'd call that correctly in that it wasn't like seventeen years. So nineteen twenty four Congress. If we see what you're doing we're coming back that give tax again, there was a good idea why we ever forget it. We lost our institution every vote were putting it back, and so they put in this give tax and all of a sudden. It was not smart It was not of all of loophole any longer yeah then, great depression had a lot to do that, because, obviously, income tax went down during the great depression and they said our coffers are getting low. So we need to be equal, ISIS again, that's right and I think the give tax has states and send to right, yeah and never went away. Yeah cause it. I guess it was challenged in court, knows upheld by the Supreme Court and be constitutional, but Congress is like
will repeal it and then you have about it back in its beneficence yeah and here's a staggering start. You know we ve thought before about past income tax. How do you know why not seem like it? We ve got a pretty good today compared to certain years, but at the historic task, for my world WAR two when they raise rates. Nineteen, forty one until nineteen, seventy seven, the very top estate tax with seventy seven percent and that crazy, that's pretty high idea This link Gerard therefore do fleeing for the borders hire me like. You made all the stolen your life and you get to keep your family gets killed. Twenty three percent of it here after you die here and give us a smile. The They stay that way. Actually for a really long time, it wasn't until yes, seventy seven,
wasn't until nineteen. Seventy seven that Congress brought that highest rate down from seventy seven percent and they did down to seventy percent, then, and then Reagan came in willing at away little by little in a cat is far down, as I think, thirty five percent. Yet the tax reform active nineteen. Seventy six and another thing came along with that was something called the G s T tax, a generation, skipping transfer, tax and other loophole. Yeah, which is like. Oh. What am I gonna give my fortune to my kids I'll, give it to my grandkids yeah wink wink Then, if you had a really gotta stay plainer, they could teach you how to leave your assets to your grand kids, but make your kids the beneficiary of any interest in income arising from those asset right. So both generations were taken care of tax free right, so they in nineteen seventy six. They closed that loophole with degeneration skip transfer attacks in grandchildren around the world cry
Cried he cried yeah. That's when the weather Simpson at that point in nineteen, seventy six went from sixty grants you a hundred and twenty thousand dollars- and you know it was stickler break your only people in suspense There were six of certain gives excited why do you travel to recover from heartbreak to trace your dna to escape the internet? I'm Povey Rosati. I travelled for our lunches, I'm darling, whereby I travel for the ancient ruins and future relic. We are the globe, trotting founders of the beloved travel website fathom and our new podcast to go, exploring all the reasons we
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What is right like her did? We not even I feel like we did vote if not A more clear the exemption is where, if you're the value of your estate comes begin as part of the processes, nobody goes in. It says this is worth this much don't start. Incidentally, come with a value of your state. If their value it was less than sixty grand at that point, then you you could transfer it to any. You can transfer declaimed. Tax free right is exempt below them. The level of six, ok, so super clear. So that rose two hundred twenty grand and change and then a ninety nine. These things. I started role and a little bit. We had this big budget surplus. I remember that the good old days and then George W came along said you know we're gonna. Do we get this big surplus organs are given back to the american people and especially the wealthy Merrick,
people and that that the threshold really started climbing yeah ike. Wet from two thousand nine it'd climb to six hundred and seventy five thousand dollars, not bad in it, jumped from six hundred seventy five thousand three point: five million dollars yeah and two thousand nine. So I went from from the ace of renouncing the seventy two hundred twenty thousand two third. Years later: three five million dollars yeah the exemption was yes that is quite a climb but if it had an even more astronomical climb from two thousand and nine to two, and thirteen because it went Chuck in the taxpayer relief act. So remember, George W came in and said hey: it's our governments role, have a bunch of taxpayers money and you know what you gonna do with it: give it back
the man is gonna, get it back and, like you said, certain people got it back. Some other people got it back, but it was a transfer wealth right, yet Brok, Obama came in and said you know what that was screwed up, I'm gonna get some of that money back for everybody. Tax, the wealthy I'm gonna, get rid of these, so called Bush tax cuts, which is what they are called and arm. He didn't at all, as mere effect. He signed in the law in two thousand and twelve year, the taxpayer relief ACT of two thousand and twelve, which took the Bush tax cuts it's worse, which had expired, already yeah, but then had been. And temporarily for two years he took this Bush tax cuts. He payment getting rid of an act, enshrine them in law and now for the indefinite future. They the
exemption is up to five million dollars for an estate, yet more than that now actually so must have been at least five while its index for inflation. Yes, it out it for two thousand sixteen hours for five point: four: five million right, or single individual, ten point nine for a couple of for a couple yeah. Then the tax rates were set at forty percent maximum right in that after it had gone down to thirty five percent under Bush right. So I think that was part of the compromise and it must bring it up to forty percent, but let's, let's basically make it permanent at five mill yeah- and there is even a year in There- this is crazy. Remember this the sole back and forth like getting rid of the Bush test who's gonna, happily thousand ten yeah and dumb into them. And ten? There is, I guess they didn't sign a paper fast enough or something, but there is no death tax. In that year,
so a few wealthy. I'm glad it's died in two thousand ten year you're. You would you like that because the very next year as category restored as those gets taxes, birthday taxes got restore and don't think that there were some people in two thousand peeking iranian Gladys holding a pillow and their hair, it's not funny at all, killing a relative for their inheritance is not funny. Now it's not certainly practice, so here's the deal and we're gonna get to the pros and cons in a second but, like I said from four twenty, sixteen because of inflation fat, five point, four five million dollars is the lifetime. Exclusion amount may have this chart the EU can basically throw out the window that says like if you have a tax will say two four hundred grand yellow seventy thousand dollars, plus thirty four percent of a hunt.
Fifty thousand cause. You have to pay percentage on the amount in excess of the lower limit, its all mine numbing, if you're just lay person, but throw them out the door because anything under five point: four: five million Scott five and a half million bucks- is under that exclusion him out, but here's the we're part because the United States, we can't make things simple. It's a unified credit is how structured. So what would you have to do? As you have to structure it on the full amount and then they give you a tax credit back. That's it I'm anything, a convoluted! That's! Not! Ok, though you pay the full amount than there like an them. Will pay you back with you. I don't think you pay
actually practices in the computation, ok or stuff, but it still seems just a necessarily convoluted sure I do she does not get off the top in future got left. Here's the other trick. If you have a lot of money- and we should say that this is we do not qualify as tax experts, or forgiving tax it by suit. If, if you are subject to the estate taxing using our attack, advise our know, how did you come up with that money? You're the guy, thing: there's an annual give tax exemption of fourteen thousand dollars per person. Oh yeah. So if you have three kid as per year yeah, if you have three per person per year, if you get three kids and there are three married and they have ten kids between them, and then they are successful. They don't have jug habits or anything like that right. You can give. Fourteen thousand dollars a year to each one of them per spouse. So
four hundred and forty eight thousand dollars a year to those three kids, there, three spouses in those ten grand kids and if you plan ahead wave your death, you could potentially give away all your money, a hundred percent tax free by the time you die through gifts. So that's seems logical to me because that is clearly middle classes, upper middle class, but that middle class that that cap, the five million know that give tackle yeah that cap of fourteen grand a year, that's not gonna. Help funnel a massive estate tax free. Do the heirs, but it does give break to middle class upper middle class for middle class,
families well, but you would only be given that away, though, if you're gonna be above the five million dollars right, because anything under that is exempted, so that a middle class. Now that's true you're right, ok was stupid. Things so if your other thinking, even Deduction of forty percent rate is a lot of money on an estate tax. They given exam here in this article. Let's have a seven million dollar estate knock off the five point: four: five million. That's one point: five million at forty percent: that's about sex, Twenty thousand. So if you look at that for the whole seven million dollar state, that's only about nine percent yeah and actually I saw two thousand thirteen brooking Study Tax Policy institute. I think study
found. That of then that year of all of the estates they had to pay taxes yeah they paid an average effective rate with they actually pay right of sixteen points, percent Tucker saddling like forty percent right and in that same year, there's another one to theirs, there's a lot of objective. We should talk about some of these objections measure. Some of the objections to this is their basically they go into you charge as one is that this kind of tax stifles investment that is the very wealthy in the very rich you're, really there economic engines of America and capitalism because theyve they introduce capital to the markets and that's what drives markets in the economic engine harm and were all better off as long as the wealthier pumping money into this. Well, if we don't part, if we don't let the rich
pump more money into it. Meaning government comes along and says your father just died. Give us forty percent of his of that vast to state that you just inherited Well, that's forty percent going Uncle SAM rather than potentially into the market yeah and ourselves. People would say: hey that's attacks for being successful. Well, that's the other is that it's basically morally incorrect, further to come in and say, give us some money, wealthy person right the year that its attacks on on success, that the government has no business. Taxing her family fortunes yeah. And then again, though, stifles economic growth and develop yeah and another thing. If you're against us, some one might say as hate. We were already taxed on that stuff. To begin with, you during life. So now, and not only that, but my dad inherited that yeah and paid an estate tax. So is this double in triple and who knows?
spends on how long your family wealth goes back. There's some many times its text here, because we do not only was attacked. His income could be taxed. Multiple times is in a state that same estate is what you're saying it. Then, of course, you a lot of people job the MIKE with its health redistribution scheme right. Are you trying to take money from the wealthy and give it to the less wealthy e the poor? and dumb home. You don't play there. I remember how, in the clouds great. There was a great show, a moon, color, it's crazy, how many things kind of like carried over and are still, of the lexicon home. You don't play only now play that to snap supplementing all its stuff back, two steps Another knock is that people say you know what this estate taxes is less than like one percent of what the government collects annually.
And they probably spin, though much go after it. Rained litigating stuff is nine times out of ten wealthy people are fighting this tooth and nail, and you know just cost too much to go. Get it right? That's a lot of these. It turns out pretty disingenuous, like they sound right if you dont look into them right, but the apparently a lot of them are not correct, like the idea that the that effective tax rate is sixteen percent of seventeen percent, not for percent another one is there: it hurts small businesses, yeah farms the Big Boogie man with the estate taxes. Well like that, you You go in and a fan owned business or a family own farm if they give go in there and says you of forty percent of that. Just because your father died so go sell some other cows, Kosovo tractor, you hey seed.
Give us the money. That's gonna have a really negative effect on the family farm or the family small business. It may cause it to go bankrupt and may cause the farm to go under. That's not good. The government can't do Did you hear that anything? Of course that's awful right, but the facts will bear that out. Correct right that seem to doesn't thirteen brooking study founder in two thousand: thirteen, twenty twenty small businesses and arms owed any estate tax at all and on average those twenty small businesses and small farms did after pasty, text painting average about four point. Nine percent of the value of the estate of their special, their special rules. Firstly, for calculating the value of farmland for estate taxes. In particular, there were is their value right, so that the text is inherently lesser right Another reason someone says might say that their unfair arms, I might say that their fair,
What we alluded to a little bit earlier about the concentration of wealth is not good thing, not just economically, but when it can the power and it's dangerous Braddock society. They have the influencers of this country b so few, and only influencers because they have so much right and the average Jos voices lost yet and the process Yasser somewhere. Somebody pointed out that the estate taxes the most aggressive part of the entire. U S, tax code. The truly only affects the people who actually can afford it or who are actually wealthy.
Doesn't it has no undue or disproportionate burden or any burden on people of lower socio economic status or even middle socio economic status? There, something like come: two tenths of one percent of households are subject to the estate tax in the United States this year. I think there are really two tents of one percent, while here that's not much near his troop and then another one to address that the idea that it bring him very much in the government. Spends more money than it then it takes in like fighting it, yeah yeah for fighting for it, personally, I saw estimates of two hundred billion. I saw one estimate of two hundred and seventy five billion between two thousand seventeen two dozen twenty six is how much they expected estate tax are taken, which is much less than one percent of the governments. The tax
revenue there by the author of this one article I saw pointed out, that's like the combined budgets of the FBI agents, We see in the EPA combined right, so it's it's actually paying for stuff in an apparently they cost about seven percent for enforcement and administration gotcha, whereas income taxes cost about fourteen percent to arm she's down deadbeats. So there's that about half the state tax problems debunked you anything else now. Therefore, that was fairly interesting for someone who doesn't like a go little foggy when they start talking about finance and taxes. But for some reason
kind of interested me you do your own taxes. No, no! No! I love it man, I love doing tax. I not only do I not like it, but I would say that I can't put a percentage on it. But having a professional, involve really really financially is beyond worthwhile, like a thousand percent worthwhile year for They can save you. Oh no, I'm sure like Ike were having somebody go back over my figures. Yeah this year by Adam its air. I dont like paying taxes. It's not fine tried. It's like this big horrible all the care and teeth like working, the usable, yeah figure. You get it
the Venus Gummy Venus De Milo, see take a chair, any form that to a beautiful statue right with no arms and then a cry. Taxes. If you are no more about their taxes type those words into the search bar has efforts at camp. Since I said, search bar surfer listener mail, I call this fan that found is through delta our I knew this would pay off one day. You know we don't know for cylinder, for while we are on Delta flight was supposed to be back on this area, Can, I wonder, like got booted off? Is anyone actually discover us board on a flight? certainly not evidence of one person awesome. So even less amass Angeles and says he found the son, a Delta fight memorial listener ever since I am sure many fans have their favorite episodes favorite sweets. Then
ideas are a few of my favorite jokes, and I didn't remember a couple of these, so I'm going to test your memory Josh you had one look at. Those look at these shoes, I'm a king of Rotterdam. That's right, you know he said he laughed for five minutes on mountain check, the language of the beard. Still laughing at that in fact, any time any to pick me up a scroll to Forty three minute market, how vestigial, vestigial Its work Alex is hilarious, including Josh's reaction. The joke verges on toilet humor, but doesn't quite belong in that category. So I don't remember them not to look it up. I do remember this when chuck the runner up his checks line, and you realize that diesel fuels named after person Jimmy gasoline I remember that argument at all reward episode does in Burma but he has little factoid for us. I finish that Alexander Hamilton Show saw the visited. The Grange
years ago, I and loved it while they are learn. Something president mentioned as a testament to his character. At did Hamilton shun slavery, as you mentioned, the also defended its worries and british subjects as a lawyer in court, and this is only six years after the declaration of independence when a guy he really was topknot here, that's firmer, Ethan BAR Bore thinks Le Ethan then Barbara Barber Quantitative it wasn't Margaret spoke Our bore Anna, like the hunting gear, Bart Barber, what If you want to get in touch this like Ethan did even I even its last name is up for grabs. Yes, you can twitter set as why escape. I guess you can join us on Facebook outcomes are selfish enough. You can send an email stuff, as the house efforts I come and has always shown- is that our home on the web stuff, you should know doc.
Furthermore, on this and thousands of other topics, as it has done for Stockholm, I dont think America has ever gone back to the way that it was before the decent sniper. The gunman most likely is killed marksman fired six times in the course of sixteen hours report police say they have never had a crime. Quite like this. It is quite a mystery and then, as the DC sniper case, unfolded that terror boldly drew. This was the most intense me, Hunt in american law enforcement? History listen to monster DC sniper, on the eye hard radioactive apple podcast, or wherever you get your pockets.
Transcript generated on 2020-01-10.